WWD.com/beauty-industry-news/financial/clarins-second-quarter-sales-rise-7-5-567572/

PARIS — Groupe Clarins reported Thursday that its second-quarter sales rose 7.5 percent at average exchange to reach 235.5 million euros, or $286 million.

At constant exchange, sales would have risen 8.8 percent.

For the half ended June 30, the company’s sales grew 6.3 percent at average exchange to 460.6 million euros, or $559.5 million. At constant exchange, sales would have increased 7.7 percent.

Clarins said its Perfume Division posted growth of 25 percent at constant exchange to 172.7 million euros, or $209.8 million. On a like-for-like basis it would have risen 27.5 percent. Clarins explained the sales hike was due to the introduction of Clarins’ Par Amour fragrance duo, Miss Me, Stella Cadente’s debut scent, plus the ongoing success of perennial bestsellers Angel by Thierry Mugler and Chrome by Azzaro.

Clarins’ Beauty Division, which includes the firm’s signature treatment brand, posted sales that dipped 2.5 percent at average exchange to 287.9 million euros, or $349.7 million. At constant exchange, they were down 1.6 percent.

In the half by region, sales increased 1.9 percent in Europe, 8.3 percent in North America, 22.6 percent in Asia and 20 percent in other countries. On a like-for-like basis they rose 2.3 percent, 12.3 percent, 23.4 percent and 23.4 percent, respectively.

In the second half of this year, Clarins expects to introduce a new advertising campaign for its namesake brand and reformulate its Extra Firming treatment line. It is also set to introduce Alien, a new Mugler women’s scent, plus a reworked version of the Azzaro Pour Homme men’s fragrance, which will be called Onyx in the Americas and Silver Black in Europe. Clarins expects that its operating margin in the second half should be about on a par with that of the first half.

Reiterating its estimate announced earlier this year, Clarins confirmed it is banking on sales of 1 billion euros, or $1.12 billion, for 2005. That would mean a 7 percent increase in year-on-year turnover at constant exchange.

This story first appeared in the July 29, 2005 issue of WWD.  Subscribe Today.